My baby is coming out soon! So I have to be looking around for the best deal for my boy’s CDA. With the heating up of interest rate environment, it always pays to look around for the CDA that gives the highest interest rate.
Currently, only POSB, OCBC and UOB are offering Child Development Accounts (CDA).
All 3 banks offers a maximum interest of 2% p.a., the only difference is the deposit cap.
- First S$36000 -> 2% p.a.
- Balance above S$36000 -> 0.05% p.a.
- No deposit cap -> 2% p.a. on all balances
As you can see, UOB’s CDA emerge as the winner as it gives 2% interest rate on all balances!
Enhanced Baby Bonus
The use of Child Development Account
We can use the money in the our child’s CDA to pay for expenses at the following Baby Bonus Approved Institutions (AIs):
- Child Care Centres
- Special education schools
- Providers of early intervention programmes
- Providers of assistive technology devices
- Hospitals and clinics
- Optical shops
My boy will be richer than me after he is born, LOL!